Summary

  • Power Grid Corp of India Ltd is India’s largest Electric Power Transmission Utility and a “Maharatna” Central Public Sector Enterprise.
  • POWERGRID has achieved an availability of more than 99.7% per year.
  • POWERGRID has an all India Broad Band Telecom Network of  66,922 Kms.

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Company Overview

Power Grid Corp of India Ltd (NSE:POWERGRID) is India’s largest Electric Power Transmission Utility and a “Maharatna” Central Public Sector Enterprise. The company is a listed since 2007. Power Grid Corp of India Ltd has  170,724 ckm Transmission Lines, 262 Sub-Stations, >99 % System Availability and 451,351 MVA Transformation Capacity.1

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Subsidiaries and Joint Ventures

Subsidiaries

  • POWERGRID NM Transmission Limited
  • POWERGRID Vemagiri Transmission Limited
  • POWERGRID Unchahar Transmission Limited
  • POWERGRID Southern Inerconnector Transmission System Limited
  • POWERGRID Medinipur – Jeerat Transmission Limited
  • POWERGRID Mithilanchal Transmission Limited
  • POWERGRID Varanasi Transmission System Limited
  • POWERGRID Jawaharpur Firozabad Transmission Limited
  • POWERGRID Khetri Transmission System Limited
  • POWERGRID Bhind Guna Transmission Limited
  • POWERGRID Ajmer Phagi Transmission Limited
  • POWERGRID Fatehgarh Transmission Limited
  • POWERGRID Bhuj Transmission Limited
  • POWERGRID Rampur Sambhal Transmission Limited
  • POWERGRID Meerut Simbhavali Transmission Limited
  • POWERGRID Himachal Transmission Limited
  • POWERGRID Ramgarh Transmission Limited
  • Bikaner-II Bhiwadi Transco Limited
  • Sikar New Transmission Limited
  • Fatehgarh Bhadla Transco Limited
  • Sikar-II Aligarh Transmission Limited

Joint Ventures

  • Powerlinks Transmission Limited
  • Torrent POWERGRID Limited
  • North-East Transmission Company Limited
  • Parbati-Koldam Transmission Company Limited
  • Teesta Valley Power Transmission Limited
  • National High Power Test Laboratory Pvt. Limited
  • Energy Efficiency Services Ltd
  • Cross Border Power Transmission Company Ltd.
  • Bihar Grid Company Limited
  • Power Transmission Company Nepal Ltd. (PTCN)
  • RINL POWERGRID TLT Private Ltd. (RPTPL)

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Business Overview

Power Grid is engaged in power transmission business with the responsibility for planning, cordination, supervision and control over inter-State transmission system and operation of Naitonal & Regional Power Grids.2

Power System Management

Power Grid Corporation of India Ltd., a transmission licensee takes continuous action regarding operation and maintenance to seek to ensure compliance with prescribed standards as well as to achieve high availability of the system for uninterrupted power supply to customers. POWERGRID O&M activities are ISO certified and systems and procedures are revised periodically to abreast with the technology.

POWERGRID has achieved an availability of more than 99.7% per year. POWERGRID adoptsHot line maintenance of transmission lines and Substation equipment to ensure this high availability.

Emergency Restoration Systems are deployed to restore collapsed towers due to natural calamity in shortest possible time. The transmission line maintenance is carried out through advance technology like use of helicopters and drones for transmission line patrolling, hotline washing of insulators, use of Mobile platform based maintenance management tool. Spares quanitity and locations are optimised for early restoration and minimise outage. Extensive on-line health assessment and monitoring equipments are fixed at important equipment for continuous health monitoring. Well equipped, accredited Oil Testing Laboratories have been established at seven locations across the country for Condition Assessment of oil filled equipment.

Telecom

POWERGRID with its brand name ‘POWERTEL’ in Telecom business is the only utility in the Country having overhead optic fibre network using Optical Ground Wire on power transmission lines.

POWERGRID has an all India Broad Band Telecom Network of  66,922 Kms.

International Business

In order to give thrust to International Business, a separate International Business Department was spun off from Business Development Department in December, 2008.

The objective of International Business is to continually leverage its capabilities with its USP of “Utility-turned Consultants” to generate superior value to its Clients and Stakeholders and hence become the most preferred Service Provider globally, to set superior global standards, to gear up for next competitive phase and to learn international best practices, replicate the International learning experience for the benefit of domestic projects and successfully contribute to overall POWERGRID revenues.

Global Consultant

Based on the rich experience earned through implementation of huge Transmission networks in India and abroad and by adopting latest technology in multifarious topology and environment, POWERGRID has emerged as a renowned Consultant in Power Sector globally.

POWERGRID’s skill set has been sharpened by project execution experience in extreme conditions both natural and man-made. In spite of all odds, POWERGRID has managed to take up the assignments successfully and implement them successfully within given time-frame.

As POWERGRID is a Utility turned Consultant, the feedback obtained while carrying out the Operation & Maintenance of its projects is ploughed back to its design departments for continual improvement. These point of difference put POWERGRID as the much preferred Consultant to bring in world class solution to its Clients.

POWERGRID has experience of over 20 years in undertaking more than 550 consultancy assignments for clients in India and abroad. POWERGRID is having Footprints in 20 countries of Asia, Africa, Asia-Pacific and Europe.

Domestic Consultancy

POWERGRID has a large network of primary transmission system of 220 EHV substations and over 1,68,140 circuit kms of transmission lines and Transformation Capacity of 4,19,815 MVA as on 31st October 2020. Building upon its un-matched techno-managerial excellence in various fields of power system, POWERGRID has been providing one stop consultancy services to State owned utilities, Private utilities, Central Public Sector Undertakings and Government departments. It has a client base of around 175 in power sector and is expanding.

Smart Grid

Smart Grid facilitates efficient and reliable end-to-end intelligent two-way delivery system from source to sink through integration of renewable energy sources, smart transmission and distribution. In this way Smart Grid technology shall bring efficiency and sustainability in meeting the growing electricity demand with reliability and best of the quality.

Smart Grid also enables real time monitoring and control of power system as well as helps in reduction of AT&C losses, demand response and demand side management, power quality management, outage management, smart home energy system etc. Smart Grid will act as a backbone infrastructure to enable new business models like smart city, electric vehicles, smart communities apart from more resilient and efficient energy system and tariff structures. Recognizing the importance, POWERGRID has taken pioneering steps in bringing Smart Grid technology to all facets of power supply value chain & developed smart grid pilot project at Puducherry through open collaboration covering all attributes of smart grid in distribution​. The pilot project shall enable demonstration of technology efficiency, policy advocacy, establishment of interoperability standards etc. which can be scalable and replicable at other places. POWERGRID has assisted various distribution utilities in formulation of Smart Grid pilot project for implementation under ISGTF as well as preparation of report for improvement of power supply in various utilities through smart grid application.

R&D

POWERGRID, since inception, is giving special emphasis on integration of new technological products/services for enhancing performance of transmission system as well as improving the safety, security, quality and reliability of power supply infrastructure while optimizing the cost of transmission and minimizing environment impact. The company gives priority to technology development activities with potential for societal, environmental and national benefits by application of advance technologies and finding solutions to gear up for future challenges. POWERGRID recognizes the potential of adopting emerging technology and upgrading the technologies to further improve the system reliability and availability through research and development.

POWERGRID Advanced Research and Technology Centre (PARTeC) established by POWERGRID has been recognized as a Research & Test infrastructure facility by the International Smart Grid Action Network (ISGAN) for testing, simulation studies and research related works in Distributed Energy Resources (DER) and Smart Grid research infrastructure.

PARTeC follows Quality Management System and is ISO 9001:2015 certified.

Acquisitions

Acquisition Of Jaypee Powergrid Limited (JPL)

JPL [a Joint Venture Company of POWERGRID (26%) and Jaiprakash Power Ventures Limited (74%)] was incorporated in 5th October 2006 to evacuate power generated from 1000 MW Karcham Wangtoo Hydro Electric power project in Himachal Pradesh. The assets comprise two transmission lines of 449 ckm (400kV D/c Karcham-Wangtoo- Abdullapur transmission line and LILO of 400kV Baspa-Nathpa Jhakri transmission line at Wangtoo) which are under commercial operation since April 2012.

The company acquired 74% stake of Jaiprakash Power Ventures Limited at an aggregate consideration of Rs  354.50 crore resulting in JPL becoming a wholly own subsidiary of POWERGRID w.e.f. 25th March 2021. Consequent upon acquisition name of the Company has been changed from Jaypee POWERGRID Limited to POWERGRID Himachal Transmission Limited (PHTL).

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Industry Overview

Indian Power Sector

Electricity is one of the most critical infrastructure for socio- economic development of a nation. For sustained economic growth of the country, development of suitable power infrastructure is essential. Despite being the third largest electricity consumer in the world, the per capita electricity consumption in India was 1,208 kWh (FY 2019-20) and is considerably low as compared to the world average of more than 3,200 kWh. Lower consumption base and a decent long term GDP growth forecast implies that power demand will grow over the foreseeable future.3

For energy security and sustained long term growth, Government of India, through its various policy and reform initiatives is making continuous efforts for facilitating establishment of clean and green electricity generating capacities together with development of related transmission and distribution infrastructure.

India’s power sector is very dynamic and diversified with the presence of mixed power generation sources including conventional and renewable; a synchronously operating national grid comprising inter-regional, regional and state grids, a vibrant electricity market and a distribution sector providing electricity to end consumers.

Peak power and energy deficits have considerably reduced over the years. The shortages in peak power and energy have reduced primarily due to addition in generation capacity, expansion of transmission systems and accomplishment of ‘One Nation - One Grid - One Frequency’ which has led to the creation of a vibrant electricity power market in India.

However, despite reduction in peak power and energy deficits over the years, many parts of the country continue to face power shortages due to inadequate growth of transmission and distribution infrastructure in the States and poor financial health of the State power utilities. For the distribution sector, Government of India has undertaken a number of key initiatives like Integrated Power Development Scheme (IPDS) to facilitate state utilities to ensure quality and reliable 24x7 power supply in the urban areas, for 100 per cent village electrification under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), universal household electrification under ‘Pradhan Mantri Sahaj Bijli Har Ghar Yojana’ (SAUBHAGYA), Ujwal DISCOM Assurance Yojana Scheme (UDAY) for improving operational efficiency of DISCOMs, Unnat Jyoti by Affordable LEDs for All (UJALA) to promote the efficient usage of energy and initiatives under Aatmanirbhar Bharat scheme.

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Sector Outlook & Key Growth Drivers

Universal access to electricity, growth in consumer income, urbanisation, housing, railways & metros, industrial activities are to fuel India’s power demand year on year.

India’s low per capita consumption of electricity compared to global average presents significant potential for sustainable growth in power demand in the country.

Government of India under National Infrastructure Pipeline (NIP) has envisioned per capita consumption at 1,616 kWh by 2025. Further, Draft National Energy Policy (NEP) published by the Government in June 2017 envisages country’s per capita annual electricity consumption to increase to 2,911 - 2,924 kWh by 2040.

National Infrastructure Pipeline (NIP) of Govt. of India envisages a cumulative capital expenditure of ~ ` 17 lakh crore during FY 22-25, in the area of Power and Renewable.

Transmission Sector

Transmission sector plays a vital role in the power system value chain. Country’s transmission system has expanded at a significant pace driven by growing demand, connecting the generating stations including integration of Renewable Energy (RE) sources from the RE rich states.

Country’s vision of achieving renewable power capacity targets of 175 GW by 2022 and 445 GW by 2030 also offers enormous growth opportunities for addition of transmission capacity both at interstate and intra-state levels. Government thrust on various policies and regulatory reforms in the power sector are expected to bring new business opportunities.

Financial Highlights

Total income in Fiscal 2021 was Rs 40,527.11 crore, which represented an increase of 5.77% over the total income of Rs 38,317.97 crore in Fiscal 2020. In Fiscal 2021, transmission and transmission-related activities constituted 89.96% of its total income, with the balance coming from its consultancy, telecommunication business and other income.

The company’s other income was Rs 2,861.46 crore in Fiscal 2021, an increase of 34.19% over the other income of Rs 2,132.43 crore during Fiscal 2020.

The company’s total expenditure was Rs 24,822.40 crore during Fiscal 2021, a decrease of 3.30% over the total expenditure of Rs 25,670.62 crore during Fiscal 2020. The total expenditure as a percentage of total income was 61.25% Fiscal 2021 as compared to 66.99 % during Fiscal 2020.

Employee benefit expenses increased by 7.72% to Rs 2,110.74 crore during Fiscal 2021 from Rs 1,959.47 crore during Fiscal 2020.

Finance cost decreased by 13.38% to Rs 8,501.01 crore in Fiscal 2021 from Rs 9,813.62 crore during Fiscal 2020. The decrease was mainly on account of repayment of loans, reduction in interest rate, decrease in exchange rates as compared to previous year.

Other expenses primarily consist cost of Repair and Maintenance of Buildings, Plant and Machinery, power charges, security expenses, vehicle hiring charges, travelling expenses, CSR expenses and FERV. Other expenses decreased by 11.52% to Rs 2,498.97 crore during Fiscal 2021 from Rs 2,824.35 crore in Fiscal 2020. The decrease in other expenses was mainly on account of decrease in travelling expenses, CSR expenses and FERV etc.

The company’s Profit before Tax & Regulatory Deferral Account Balances during Fiscal 2021 was Rs 14,626.07 crore, an increase of 15.65% over profit before tax & Regulatory Deferral Account Balances of Rs 12,647.35 crore during Fiscal 2020.

In Fiscal 2021, the company provided for Rs 2529.11crore as against Rs 2,230.74 crore during Fiscal 2020.

The company has given a consolidated one-time rebate of Rs 1078.64 crore to DISCOMs and Power Departments of States/Union Territories for passing on to end consumers on account of COVID-19 pandemic against the billing of April,2020 and May,2020.Due to said consolidated one-time rebate, there is a reduction in the profit for the year and the same has been disclosed under “Exceptional Items” in the statement of Profit & Loss.

The company’s Profit after Tax during Fiscal 2021 was Rs 11,935.78 crore, an increase of 10.40% over Profit after Tax of Rs 10,811.18 crore during Fiscal 2020.

June 2021 Results

Power Grid Corp Consolidated June 2021 Net Sales at Rs 10,216.48 crore, up 8.03% Y-o-Y4

August 11, 2021; Reported Consolidated quarterly numbers for Power Grid Corporation of India are:

Net Sales at Rs 10,216.48 crore in June 2021 up 8.03% from Rs. 9,457.40 crore in June 2020.

Quarterly Net Profit at Rs. 5,998.28 crore in June 2021 up 192.82% from Rs. 2,048.42 crore in June 2020.

EBITDA stands at Rs. 9,173.68 crore in June 2021 up 5.43% from Rs. 8,700.94 crore in June 2020.

Power Grid Corp EPS has increased to Rs. 8.60 in June 2021 from Rs. 3.92 in June 2020.

References

  1. ^ https://www.powergridindia.com/company-overview-0
  2. ^ https://www.powergridindia.com/our-business
  3. ^ https://www.powergridindia.com/sites/default/files/NSEBSE_AGMNOTICE_dt01092021_0.pdf
  4. ^ https://www.moneycontrol.com/news/business/earnings/power-grid-corp-consolidated-june-2021-net-sales-at-rs-10216-48-crore-up-8-03-y-o-y-7314711.html
Tags: IN:POWERGRID
Created by Asif Farooqui on 2021/10/18 12:22
     

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